The Town of Boothbay Harbor was formed on February
16, 1889, by act of the State Legislature. Boothbay Harbor adopted
the statutory town manager plan of government February 1958 (30-A
M.R.S.A. § 2631-2639), which consists of a Town Meeting,
an elected Board of Selectmen that also serves as Overseers of the
Poor, a Town Manager chosen by the Board of Selectmen, and other officials
that may be elected or appointed under Maine law or this Code. The
Town has accepted a Seal to be the official emblem as follows: The
Seal or emblem shall consist of a circular design with the words "TOWN
OF BOOTHBAY HARBOR INC. 1889," around the edge. The center shall contain
a two-mast schooner on the sea with seagulls flying overhead, said
seal or emblem having been designed by Asa Tupper of Boothbay Harbor,
Maine.

The Annual Town Meeting shall be held on the
first Saturday of May each year, following the elections on the preceding
day. The Annual Town Meeting and any Special Town Meetings shall be
called by posting notice as required by law and by publishing a public
notice, or warrant, announcing the date, time, and place of the meeting
in a newspaper printed or published in Boothbay Harbor, if such a
newspaper exists.

An annual town report shall be printed and ready
for distribution one week before the Annual Town Meeting. It shall
include a report of the annual audit, records of financial transactions,
a list of assets and liabilities, and reports of Town officials. It
shall include those items required by 30-A M.R.S.A. § 2801,
as amended from time to time; the reports of Town officials; and such
other information as the Board of Selectmen may require.

The Town of Boothbay Harbor's fiscal year shall commence
on July 1 and end on June 30. At least 30 days prior to the beginning
of each fiscal year, the Town Manager shall submit to the Board of
Selectmen a proposed budget of revenues and expenditures for the upcoming
year. The proposed budget shall set forth any changes from the budget
of the previous year approved at the Annual Town Meeting.

General fund balance level. The Board of Selectmen
shall propose a budget that achieves at the budget's fiscal year end
an undesignated fund balance in the general fund of not less than
8% of the total general fund budget of that fiscal year. If it is
projected that the undesignated fund balance of the general fund will
exceed 8% for that fiscal year, the Selectmen may use the excess over
8% to reduce the tax commitment for the ensuing fiscal year. If the
average percentage of the undesignated fund balance of the general
fund is less than 8% of the total general fund budget in two consecutive
fiscal years, the Board of Selectmen shall present a budget for the
next fiscal year that restores the undesignated fund balance of the
general fund to at least 8% in no more than a five-year period.

At any time, the Board of Selectmen may make emergency
expenditures from the undesignated fund balance to meet an essential
need for expenditures to protect the public health, safety, or welfare.
Such emergencies consist of a natural disaster, a sudden unanticipated
event, or a severe economic decline, which requires a response by
the municipal officers in less time than ordinarily necessary to notify
the general public. An appropriation request by the Board of Selectmen
for an emergency expenditure shall contain the amount of funds requested,
the precise use, and purpose of the funds, and a plan to restore the
funds. Any other urgent need not included in the budget shall require
notice and public hearing before any funds are expended from the undesignated
fund balance.

Excluding normal professional services, purchases
of and contracts for supplies, contractual services and improvements
estimated to cost in excess of $5,000 shall be purchased by formal
written sealed bid from the lowest qualified bidder after due notice
inviting proposals. All bid awards must be approved by the Board of
Selectmen.

The administration of all fiscal and municipal affairs
of Boothbay Harbor, except as otherwise herein provided, with particular
reference to the town manager plan, shall be vested in the Board of
Selectmen, consisting of five members. The Board of Selectmen shall
exercise its powers in the manner herein provided and shall also serve
as the Overseers of the Poor. The members of the Board of Selectmen
shall constitute the municipal officers of the Town of Boothbay Harbor
for all purposes required by law and, except as otherwise herein provided,
shall have all the powers and authority given to the Board and perform
all duties required of municipal officers of towns under the laws
of this state. Members of the Board of Selectmen shall be elected
at large by the qualified voters of the Town of Boothbay Harbor for
terms of three years. At the first meeting following the Annual Town
Meeting, the Board of Selectmen shall elect a Chairman and Vice Chairman
among its members to serve one-year terms.

Compensation. Each member of the Board of Selectmen
shall receive an annual compensation for his or her services. The
Board of Selectmen by order shall fix the salaries of officials appointed
by the Board of Selectmen, including the salary of the Town Manager
for his or her services as such and for all other services rendered
by him or her.

Appointment of auditing agency or accountants. Prior
to the end of each fiscal year, the Board of Selectmen shall designate
a qualified public auditing agency or private accountant(s) who, as
of the end of the fiscal year, shall make an independent audit of
all accounts and other evidences of financial transactions of the
Town. The auditing agency or accountants shall submit their report
to the Board of Selectmen and the Town Manager. The accountants shall
have no personal interest, direct or indirect, in the fiscal affairs
of the Town or of any of its officers.

The Board of Selectmen shall appoint a Town Manager who shall have and perform the duties provided in Title 30-A, Subchapter 11 of § 2631, known as the "Town Manager Plan." The Town Manager is the chief executive officer and administrative official of the Town, and is directly responsible to the Board of Selectmen for the proper and effective administration of all Town affairs. The Town Manager shall serve as Tax Collector, Treasurer, Road Commissioner and Agent for the Overseers of the Poor. Except as provided below and in Subsection B, the Town Manager shall be responsible for the hiring and firing of all municipal employees. Department heads shall be appointed by the Town Manager, subject to approval and confirmation by the Board of Selectmen. The Town Manager has the authority to recommend to the Board the removal of any department head for cause, after notice and hearing. The Board of Selectmen is responsible for setting compensation.

The Board of Selectmen shall appoint for one-year
terms all municipal officials required by general law, including Finance
Officer, Town Clerk, Registrar of Voters, Public Works Director, Chief
of Police, Harbor Master, Fire Chief, Code Enforcement Officer and
Director of Emergency Management. The Town Manager is appointed by
the Board of Selectmen as specified by contract. Except for police
officers, the oath of office is not required for nonappointed officials.

The Town Manager shall prepare and submit to the Board
of Selectmen monthly financial statements and a complete report on
the finances of the Town at the conclusion of each fiscal year; attend
meetings of the Board of Selectmen; ensure that all laws and ordinances
governing the Town are faithfully executed; and act as Treasurer,
Tax Collector, Excise Tax Collector, Agent for Overseers of the Poor,
and Road Commissioner.

Each year the Town Manager will present to the Board
of Selectmen for its approval a Fee Schedule listing fees to be charged
as provided for in other sections of this Code. The municipal officers
shall review the fee schedule annually and are hereby specifically
authorized to amend the fee schedule after their review. Nothing in
this section authorizes the municipal officers to set fees in a manner
not allowed by state statute, rule, or regulation.

The Town Manager, at least 30 days prior to the beginning
of each budget year, shall submit to the Board of Selectmen a budget
and an explanatory budget message containing an outline of the proposed
financial policies of the Town for the budget year. The budget, or
the explanatory budget message, shall set forth any changes from the
previous year in cost and revenue and shall explain any major changes
in financial policy. The Town Manager shall act as purchasing agent
for all departments of the Town and shall perform other such duties
as may be prescribed by the Board of Selectmen, not inconsistent with
the laws of the State of Maine.

The Town Clerk shall be appointed by the Board
of Selectmen for a one-year term. The Clerk shall perform all duties
prescribed by law, in addition to any duties prescribed by the municipal
officers. The duties prescribed by law include, but are not limited
to, care and maintenance of public records, issuing certain licenses
and permits, and election duties. The Board of Selectman may authorize
the Clerk to dispose of old records, as appropriate and following
state law and regulations.